Economics 120 M. Finkler

Economics 120 M. Finkler

Introductory Macroeconomics Winter 2010

Office: Briggs Hall 216

Phone: Ext. 6664

Class Meetings: MWF 1:50 – 3:00 and R 3:10 – 4:20

Office Hours: MWF 3:00 – 4:30

Textbooks: Principles of Macroeconomics, N. Gregory Mankiw, Fifth Edition, Thomson Southwestern, 2009 and registration at Aplia.com

This course provides an introduction to economic analysis with a focus on key macroeconomic components: inflation, unemployment and economic growth. After a section devoted to the approaches economists use to understand economic phenomena, the second portion of the course introduces microeconomic analysis to understand prices, quantities, and markets as well as consumer and producer responsiveness to price and income changes. The third segment of the course addresses the definition and measurement of key macroeconomic variables, while the fourth section builds several macroeconomic models to assist in explaining the long term behavior of national economies. The final two segments of the course are devoted to understanding short run macroeconomic fluctuations and potential stabilization policies, with specific attention paid to monetary and fiscal policies. In particular, we will address when and why macroeconomists disagree about the use of various policies instruments and strategies, especially in the current economic context.

The Mankiw text provides the fundamentals needed to understand aggregate economics and policy debates. Additionally, material from the text’s website (http://mankiwxtra.swlearning.com) and my website (www.lawrence.edu/fast/finklerm) will be used. Furthermore, this course will take advantage of the Aplia website (http://www.aplia.com), which provides both homework assignments and other opportunities to actively engage in economic thinking. To register, log on to the Aplia website, click New Student and enter the course key: SGFH-GS3P-F564.

The grade for the course will be determined as follows:

Midterm exam #1 January 28 20% of grade

Midterm exam #2 February 25 20% of grade

Final exam March 19 at 1:30 p.m. 30% of grade

Homeworks Various 30% of grade

(The dates for the midterm exams are tentative and may change, but any changes will be announced at least one week prior to the exam.)

All exams are closed notes and closed book and are to be completed within the allotted time period. Appeals to take examinations at times other than those scheduled must be based on official sanctioned reasons.


Tentative Syllabus

Topic Date Reading

I.  Introduction

  1. Scope of the Course and Principles January 4 Chapter 1
  2. Methods, Modeling, and Values January 6 Chapter 2
  3. Trade and Comparative Advantage January 7, 8 Chapter 3

II.  Microeconomic Foundations

  1. Supply, Demand, and Markets January 11, 13 Chapter 4
  2. Elasticities January 14 Chapter 5
  3. Governmental Intervention January 15 Chapter 6

No Class – Martin Luther King’s Birthday January 18

  1. Consumers, Producers and January 20 Chapter 7

Efficient Markets

Experiment 1 January 21

e. Taxation January 21 Chapter 8

f. International Trade January 22 Chapter 9

g. Cost of Production January 25 Handout

Review Session January 27 Midterm Exam #1 January 28

III.  Introduction to Macroeconomics

  1. Goals and Controversies January 29
  2. GDP and other measures of January 29 Chapter 10

Economic welfare

c. Prices and Inflation February 1 Chapter 11

d. Employment and Unemployment February 3, 4 Chapter 15

Experiment 2 February 4

IV.  Long Run Economic Models

  1. Production and Growth Feb 5, 8 Chapter 12
  2. Saving, Investment February 18 Chapter 13

No Class – Reading Period February 11 and 12

  1. Financial Investment February 15 Chapter 14

Experiment 3 February 17

  1. The Monetary System February 17, 18 Chapter 16
  2. Money and Inflation February 19, 22 Chapter 17

Review Session February 24

Midterm Exam #2 February 25

V.  Short Run Economic Fluctations

  1. Aggregate Demand and Aggregate February 26 Chapter 20

Supply March 1

b. Monetary Policy March 1 Chapter 21

c. Fiscal Policy March 3 Chapter 21

Experiments 4 and 5 March 4

d. Short Run Tradeoffs March 5 Chapter 22

VI. Debates about Macroeconomic Policy March 8, 10, 11 Chapter 23

Review Session March 12

Final Exam 1:30 P.M., March 19th

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